Adidas 2002 Annual Report Download - page 132

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18 /// MINORITY INTERESTS
Minority interests are attributable to 11 subsidiaries and 12 subsidiaries as at December 31, 2002
and 2001 respectively (see Shareholdings).
These subsidiaries were mainly set up together with former independent distributors and
licensees for the adidas brand. Salomon & Taylor Made Co., Ltd., Tokyo (Japan) is a public company,
which has been listed on the Tokyo Stock Exchange since 1995.
Minority interests evolved as follows in the years ending December 31, 2002 and 2001
respectively:
19 /// SHAREHOLDERS’ EQUITY
In October 2002, the nominal capital of adidas-Salomon AG was increased as a result of the
exercise of 73,300 stock options and the issuance of 73,300 no-par-value bearer shares associated
with the first exercise period of Tranche II of the Company’s stock option plan. At December 31,
2002 the nominal capital of adidas-Salomon AG amounted to € 116,281,600 and was divided into
45,422,500 no-par-value bearer shares.
In January 2003, the nominal capital of adidas-Salomon AG was increased by a further
€ 45,440 as a result of the exercise of 17,750 stock options and the issuance of 17,750 no-par-value
bearer shares associated with the second exercise period of Tranche II of the stock option plan.
As of February 14, 2003 the nominal capital amounts to € 116,327,040 and is divided into 45,440,250
no-par-value shares.
Actuarial assumptions for employee turnover and mortality are based on empirical data, the
latter on the 1998 version of the mortality tables of Dr. Heubeck as in the prior year. The actuarial
assumptions for other countries are not materially different.
The pension obligation can be analyzed as follows:
On the basis of the actuarial valuations as at December 31, 2002 and 2001 it was not necessary
to recognize actuarial gains or losses pursuant to the corridor approach of IAS 19.92 (revised 2000).
Pension expense attributable to the defined benefit plans comprises:
17 /// OTHER NON-CURRENT LIABILITIES
Other non-current liabilities include mainly obligations under finance leases of € 8 million and
€ 9 million (see also note 20) and negative fair values of long-term interest rate options of € 10
million and € 4 million as at December 31, 2002 and 2001 respectively.
Liabilities falling due after more than five years totaled € 1 million and € 3 million as at
December 31, 2002 and 2001 respectively.
130 FINANCIAL ANALYSIS CONSOLIDATED FINANCIAL STATEMENTS (IFRS) /// NOTES TO THE CONSOLIDATED BALANCE SHEET
PROVISION FOR DEFINED BENEFIT PLANS € in thousands
Dec. 31 Dec. 31
2002 2001
Present value of the defined benefit obligation 92,655 82,367
Unrecognized actuarial losses (3,264) (724)
Provision for pensions 89,391 81,643
PENSION EXPENSE FOR DEFINED BENEFIT PLANS € in thousands
Year ending December 31
2002 2001
Current service cost 6,323 5,236
Interest cost 4,111 4,092
Past service cost –396
Pension expense 10,434 9,724
MINORITY INTERESTS € in thousands
2002 2001
Minority interests as at January 1 58,157 89,750
Translation differences (2,791) (1,387)
Net loss/gain on cash flow hedges, net of tax (127) 108
Acquisition of minority interests (10,486) –
Shares sold to third parties 420 129
Share in net profit 13,681 20,906
Dividends to third parties (3,341) (51,349)
Minority interests as at December 31 55,513 58,157